Originally published 10:00 p.m., December 15, 2014Updated 1:21 p.m., December 17, 2014

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One word came to would-be Miramar Hotel developer Rick Caruso on Monday: limbo. After a six-hour hearing in which dozens of Montecito residents expressed impatience over the years of talk of reviving the hotel as they also voiced strong concerns about its effects on neighborhood parking, the Montecito Planning Commission voted unanimously to postpone a final decision on a newer, smaller Miramar proposal until January 21, 2015.

In August, Caruso — who has had two previous iterations of the hotel approved by the County Board of Supervisors in 2008 and 2011, only to see those projects stall for different financial reasons — submitted his third application and has since erected story poles on the property and earned the wholehearted endorsement of the Montecito Association. Caruso’s third bid scaled back the number of rooms from 186 to 170, decreased the overall square footage, and tailored the exterior into more of a Montecito-friendly, Cottage-style aesthetic. But with that cozier design came fewer parking spaces than previously proposed, down to 436 on-site spots compared to the 494 previous that would have been a mix of on-site and underground.

Paul Wellman

Montecito Planning Commission

The parking issue was raised in a letter from a Pasadena law firm representing a Miramar Avenue resident worried that parking at her home would be imperiled by the project. The concern was seconded by commissioners who said that those 436 spots — 59 of which would dot the entry area, oceanfront, and Miramar Avenue — wouldn’t be sufficient for a 170-room hotel with amenities for nonguests, including a beachfront restaurant, spa, and beach club. The proposal also included 89 spots set aside for public parking — a slight jump from the 82 public spots in the last proposal — but it was not enough to assure the commissioners that beachgoers, hotel guests and employees, and neighbors wouldn’t find themselves in a constant battle for parking.

The attorney heading that law firm, Robert Silverstein, has gone toe-to-toe with Caruso in the past, representing a Glendale hotel owner who didn’t want to sell his property to Caruso for the developer’s Americana at Brand project. Silverstein’s website also cites several successful cases filed under the California Environmental Quality Act (CEQA) and the Public Records Act (PRA), two laws on which Silverstein based his letter to the Montecito Planning Commission. In his letter, the attorney alleged that certain documents related to the Miramar proposal weren’t made available on time — a violation of CEQA — and that a PRA request his firm submitted to the Montecito Water District regarding the hotel plans wouldn’t be realized until after this week’s meeting. In his letter — submitted four days ahead of the Monday meeting — Silverstein lobbied to have a final decision delayed on those grounds.

Silverstein’s client, as well as the commissioners, also raised concerns about the hotel’s water use. The property — with five water meters on site, the first of which was installed in 1924 — is considered an existing district customer, said district general manager Tom Mosby, and would be granted 45 acre-feet per year; if it were to exceed that supply, fines would be imposed. Mosby said the district expects to have 2,600 acre-feet available overall for the next water year, which is half the amount when the rationing ordinance was imposed earlier this year.

Reducing Silverstein’s letter to “smoke screens,” Matt Middlebrook, Caruso’s right-hand man, repeatedly told the commissioners that the developers, who were shooting for construction to start in June 2015 with an opening in 2017, would do everything to ensure the operation — estimated to cost $200 million on Caruso’s dime — ran smoothly. “We will make this work,” Middlebrook said. “And if it’s not, we will invest the resource to make sure it does. We’re not going to let a $200 million investment not work.”

A heated Caruso made his frustration clear toward the end of the hearing, after the commissioners had all but voted to delay making a final decision. Caruso, the third developer to try to get a reimagined Miramar off the ground in the last 15 years — Studio 54 cofounder Ian Schrager was the first, followed by Ty Warner — reminded the commission that he already has a larger-scale project approved. “What I can’t afford to do is to be in limbo,” Caruso said, asking that the commissioners vote on the third revision rather than postpone their vote. “Take a vote, and if you don’t like this project, vote it down. But we’re not changing it. I’m fine building the other project.” After the meeting, Middlebrook declined to comment on what Caruso will do next.

Comments

Caruso really blew it here. He had an approved project. Government regulation and bureaucracy ALWAYS gets worse and never gets better. He should have run with his approved plans when he had the chance, but he blew it with his greed and held out for perks from the city.

Botany, I agree- Caruso finds a way to snatch defeat from the jaws of victory. Yet there must be method to his madness. He had to know that such a significant reduction in parking would not be met with open arms. He plays the long game. Just hard to tell what that game is

Drive around the El Encanto streets to see what expanded employee parking has done to that neighborhood or community access to Orpet Park.

El Encanto was all promises about the expanded numbers of employees taking the bus and using a satellite parking spot with shuttles. All failed and no enforcement so the hotel expansion is now a blight on the surrounding neighborhood.

Can hardly wait until Caruso starts digging into that cliff side for his expanded plan underground parking and runs into water tables and old drilling equipment. He will be better off with the Montecito Planning Commission demands than undertaking that underground demolition derby for the former plan.

Don't blink, Montecito. LA thuggery did not build this town or its premium brand. Which is exactly why Caruso expects to get premium prices for his resort, because it is getting built in a town full of persnickety nit-pickers.

Here we go again. Greed? Please. What do you think it cost to be in planning and Montecito objectionista limbo for 8 years? What do you think his return on investment will be after deducting all that cost? What you call his "greed" was an attempt to get compensation from the County for their unforgivably ponderous, complex, lengthy and expensive planning process.

The questions being asked, primarily by new members of the MPC, have been asked and answered in the past. Enough already.

Like what? He didn't know how onerous this process was going in? He's an experienced developer. If you can't stand the heat, stay out of the kitchen. No other developers get a break on the TOT, why should Caruso have expected anything different. Now he's back in project approval hell. That's just too bad. He gets no sympathy from me.

Caruso always had the opportunity to come in small, unobtrusive and sensitive to the community. He certainly was able to read the prior histories other developers had with this property before he took it over.

Instead he chose to threaten and shake down this community with every big developer trick he has up his sleeves. Including leaving his property so blighted he hoped everyone would vote to go all along with his bloated plans just to get rid of the mess.

Caruso needs remedial education on neighborhood compatibility which comes with the local approval process that runs with the land he willingly chose to purchase.

If he thought his earlier and approved plans worked for his bottom line, he would have already built them out. Using them now to extort special favors is not the way we do business in this town. Caruso needs to take lunch in the Wine Cask patio and meditate up on what happened to the last LA developer who came screaming in here and trampled local sensibilities.

Jarvis you're one pathetic man. Talk about class envy... you'd do yourself wonders to stop thinking you're something you're not and accept that you will always be a broke, whiny loser.

And as far as the Miramar: Reading your posts its clear you're new here. This fight, this battle to rebuild has been going on for many years. The MA screwed the pooch on this one and they continue to show their true colors with this latest push back. But the bottom line is that the Miramar will never make any money and to many in Montecito, having nothing there is better than some over priced, stuffy hotel that attracts the wrong type and so, who cares if they build it or not... I dont.

Greed certainly blinded him & the decision making process to the point he might be better off to never develop the property. Instead, turn it into a gorgeous, beachside park for the citizens of Santa Barbara & Montecito complete with parking, and an all-green planning approach. He could then take his generous donation to his tax person & ride into the sunset never to be seen again in this county.

Montecito swells love scolding others about their duty to take care of those they claim are less fortunate. Now they have an opportunity to buy the property from Caruso and build the 14 story vagrant shelters that are so popular with the new Casa Esperanza director.

Caruso pretends to 'be concerned' about the welfare & happiness of local Montecito residents. Feigning parking, environmental & esthetic concerns ~ meanwhile pulling the same shady act on Pacific Palisades residents just down the road with their similar in many ways long-standing community as Montecito's Village. Looking to completely urbanize the existing intact Mid-Century Character of The Palisades by transforming that community's urban center to his own Cheesy Version of Yuppie Plantation Mall Blandness as he did with LA's Grove and Brand Centers (glorified malls). Charming his way there with local residents with his 'Sensitivity to the Retro Ambiance of your Community' speeches just the same as he continues to do here for his own self-serving profit ~ Be Smart Montecito before it's Too Late • http://la.curbed.com/archives/2014/12...

Parking is a very valid concern. Often developers provide plenty of parking for future customers, but little to none for employees. Which usually means employees end up parking in the surrounding neighborhood. Employees should never be allowed to park on public streets. Developers and the businesses that they create should be required to provide off street parking for 100% of employee vehicles.

Frankly, I hope that Caruso comes to his senses and walks away like the last two owners did. Then the obstructionista can explain to coming generations why a piece of prime oceanfront real estate that could be generating jobs and taxes is sitting empty.

Or better yet, go back to his improved LARGER plan.

I've been following this for years and the losers/whiners/NIMBYs/BANANAs script never changes.

Class envy is such an ugly thing. But then, so is the 'I got here first, screw you' mentality so prevalent in much of CA. And don't tell me to leave if I don't like it - you'd just be reinforcing what I said.

JarvisJarvis with all his success and wealth is planning on buying the property and building a new hotel. After all the man is a genius and will turn that plot into the biggest county tax cash cow you've ever seen! All without a drop of water or the need for parking or any of that LA stuff....

JarvisJarvis knows what is best for everyone since his huge list of accomplishments and successes trump those of both Caruso and Warner.

Slick Rick vs the MPC, this is almost as good as the Sony email hacks. Battle of the titans. Did anyone see the news last night when one of the MPC told him to hurry up and finish when he was speaking? LOL! I thought his head was going to explode. I actually thought he had a valid point all though I am sure there were many other concerns. Whatever happens, Montecito will be angry after. How nice it must be to have basically a nature preserve at the beach now? Once that place gets rolling with meetings rooms, parties etc..it is going to be a circus. Enjoy.

Perhaps the Montecito Water District should just use its power of eminent domain, buy the property and build its own desal plant. Good location for it. Or maybe Rick can rent it out to CalTrans for a construction supply and storage area for the 101 expansion. Good location for that, too.

No, basic economics will drive Caruso away for good. He paid too much and if he built his project he would make too little. That is why no one will fund his project. He has no one to blame but himself, the greater fool.

Oh, please, John Locke- you and a handful of people may buy Caruso's predictable, choreographed temper tantrum. the rest of us vividly recall Caruso pitching the same fit six or seven years ago and he got his way then- and an approved project. Yet he thrives on publicity and manufactured controversy so, here he is again. Yawn.

I am not sure where the anarchy comes into play. The MPC keeps moving the target and sooner or later Slick Rick will have legal recourse. Then the place will sit there till the cows come home. Part of me wonders is that what you all want?

Actually as I read the last few lines in the SBNewsrags article on it today, I think that is exactly what many people want, for it: to never get built and have the own little version of Hammonds meadow. Good luck with that. Slick Rick paid way too much and sooner or later his patience will run out so you can either work with him, or someone else might think they can run the gauntlet. Seems to me he has met his end of the deal. Besides, he will probably lose money and sell it in a few years anyway.

How is MPC moving the target? Details, thank you. Shouldn't the County reign in the MCP, if this is the case to avoid legal exposure. Or have they already concluded Caruso is only blowing smoke.

County has its entire legal department ready to interpret regulations its advisory boards are asked to implement. Why are they sitting on their hands if as you claim, MPC is out of control and will expose the county to legal liabilities?

Don't wonder bimbo- many would like to see this property remain fallow. But that can only be accomplished through proper legal process too - like a willing seller meeting a willing buyer.

"I kinda wish..... "sue the crap ..."that would really get good" does sound like the mere thought of this possibility sends a tingle up your leg, bimbo.

Ok, you got me. Part me of can't wait to watch the fur fly after it is built and Montecito gets its own little version of the Camino Real Marketplace because it will absolutely become a traffic parking cluster#%$. The other part of me would like to see some hot SLAPP action. Either way, it is fun to watch people with $$ squirm and get a dose of reality. I don't think that is anarchy, I think it is karma. Or they can all just play nice. Yeah right.

How about Warner Meadows. Ty Warner buys the property, deeds it to the county and creates a park with soccer fields, basketball courts and beach access? Part of his rehab. My guess is MPC would find fault because that is what they do.

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What is a bit entertaining is the unnamed neighbor who hired the lawyer just recently bought the property on Miramar as vacation home and the home does not have any off street parking. Caruso already offered the owner a number of options. Sounds pretty non conforming Often when a property changes ownership the city will make the new owners correct the issues. Not sure how this works in unincorporated areas, but if there was one of those houses in the area where a garage was converted into a living space maybe the neighbors need to file some complaints. After all, the people have multiply cars and are taking up public parking spots